8I HOLDINGS LIMITED RESULTS - ASX · private equity, as well as a financial education and training...

Contents Page Results for Announcement to the Market A

Review of Performance of the Group B

Annual Financial Statements C

General Information 1

Directors’ Statement 2

Independent Auditor’s Report 5

Consolidated Statement of Comprehensive Income 7

Statements of Financial Position 8

Statements of Changes in Equity 9

Consolidated Statement of Cash Flows 12

Notes to the Financial Statements 14

Media Enquiries:

Louis Chua

Company Secretary (Australia)

8I Holdings Ltd

+65 6225 8480 ext. 114

[email protected]

Goh Yi Lin

Investor Relations

8I Holdings Ltd

+65 6225 8480 ext. 113

[email protected]

About 8I Holdings Limited

8I Holdings is the holding company of the 8I Group that is based in Singapore and operates an investment business in listed securities and private equity, as well as a financial education and training seminar business. Our experiences as a financial education company focusing on investment techniques with “Value Investing” through our flagship “Millionaire Investor Program” has facilitated significant growth and established 8I Group as one of the leading financial education seminar operators with an investment business in Singapore.

8I HOLDINGS LIMITED AND ITS SUBSIDIARIES

RESULTS FOR ANNOUNCEMENT TO THE MARKET (ASX APPENDIX 4E) &

ANNUAL FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2016

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8I Holdings Limited (ASX: 8IH) (Incorporated in the Republic of Singapore) Company Registration Number: 201414213R ARBN 601 582 129

RESULTS FOR ANNOUNCEMENT TO THE MARKET (ASX APPENDIX 4E) For the financial year from 1 April 2015 to 31 March 2016 Preliminary final report for the financial year ended 31 March 2016 as required by ASX listing rule 4.3A

RESULTS FOR ANNOUNCEMENT TO THE MARKET (All comparisons to financial period ended 31 March 2015) S$ Up/Down % Movement Revenue from ordinary activities 22,226,095 Up 108.3% Profit after tax from ordinary activities attributable to members

18,582,431

Up

287.8%

Net profit attributable to members 18,582,431 Up 287.8% Total comprehensive income attributable to members

22,319,519

Up

360.4%

Dividend information

Amount per

share (Singapore

cent)

Franked amount per

share (Singapore

cent)

Tax rate for franking credit

Interim FY2016 dividend per share* (paid 1 December 2015)

0.5 NA NA

Final FY2016 dividend per share* (to be paid 1 September 2016)

0.5 NA NA

* The dividends declared/paid are not subject to Australia franking regime as 8I Holdings Limited is not an Australian corporate tax entity.

Interim dividend dates Ex‐dividend date 14 July 2016 Record date 15 July 2016 Payment date 1 September 2016

31.3.2016 31.3.2015 Net tangible assets per security S$0.129 S$0.092

This information should be read in conjunction with the FY2016 Annual Financial Report of 8I Holdings Limited and its subsidiaries and any public announcements made in the period by 8I Holdings Limited in accordance with the continuous disclosure requirements of the Companies Act (Chapter 50) and Listing Rules. Additional Appendix 4E disclosure requirements can be found in the Directors’ Statement and the consolidated financial statements for the financial year ended 31 March 2016. This report is based on the consolidated financial statements which have been audited by Kong, Lim & Partners LLP.

A

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Financial and Operations Review Overview

Business Segment Report

Education and Events

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Investment Listed securities

Private Companies

384

66 31

520

0

484

73 88

1187

0

601

155

172

1248

0

850

229 32

5

1508

205

1236

377

689

1610

199

M I P R E I T S M ‐C I R C L E SUBSCR I P T ION

V I S MAP I C

PROGRAMME PARTICIPANTSFY 2012 FY 2013 FY 2014 FY 2015 FY 2016

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Financial Position

Subsequent Events after Financial Year

CT Hardware Sdn Bhd (Malaysia) “CTH”

Financial Joy Institute Pte Ltd (Singapore) “FJI”

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8I Holdings Limited nd its s sidi ies (Incorporated in the Republic of Singapore) Company Registration Number: 201414213R ARBN 601 582 129

i e to s St tement nd in n i l St tements o t e in n i l e ended

2016

C

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Contents

Page General Information 1 Directors’ Statement 2 Independent Auditor’s Report 5 Consolidated Statement of Comprehensive Income 7 Statements of Financial Position 8 Statements of Changes in Equity 9 Consolidated Statement of Cash Flows 12 Notes to the Financial Statements 14

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General Information As at 31 March 2016

1 8I Holdings Limited and its Subsidiaries

Annual Financial Statement

Directors Mr Chee Kuan Tat, Ken (Executive Chairman) Mr Clive Tan Che Koon (Executive Director) Mr Chay Yiowmin (Non‐executive Director) Mr Charles Mac (Non‐executive Director)(appointed on 26 April 2016) Company secretary (Singapore) Mr Ang Teck Huat Company secretary (Australia) Mr Louis Chua Chun Woei (appointed on 26 April 2016) ARBN: 601 582 129 Registered office (Singapore) Goldbell Towers, 47 Scotts Road, #03‐03/04, Singapore 228233

Tel: +65 6225 8480 Fax: +65 6235 0332

Registered office (Australia) C/‐ SmallCap Corporate Pty Ltd, Suite 6, 295 Rokeby Road, Subiaco WA, Australia, 6008

Tel: +61 (8) 6555 2950 Fax: +61 (8) 6166 0261

Principal place of business Goldbell Towers, 47 Scotts Road, #03‐03/04, Singapore 228233 Share registrar Boardroom Pty Limited

Level 7, 207 Kent Street, Sydney, NSW, Australia 2000 Tel: +61 (2) 9290 9600 Fax: +61 (2) 9279 0664

Auditors Kong, Lim & Partners LLP

Chartered Accountants 13A MacKenzie Road Singapore 228676 Partner in charge: Lim Yeong Seng (since 2015) Tel: +65 6227 4180 Fax: +65 6324 0213

Stock exchange listing 8I Holdings Limited shares are listed on the Australian Securities Exchange (ASX code: 8IH)

Website www.8iholdings.com This report covers both 8I Holdings Limited as an individual entity and the consolidated entity comprising 8I Holdings Limited and its subsidiaries. The Group’s functional currency and presentation currency is Singapore Dollars (S$). A description of the Group’s operations and of its principal activities is included in the notes to the financial statements. The directors’ report is not part of the financial report.

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Directors’ Statement

2

The directors are pleased to present their statement to the members together with the audited consolidated financial statements of 8I Holdings Limited (the Company) and its subsidiaries (collectively, the Group) and the statement of financial position and statement of changes in equity of the Company for the financial year ended 31 March 2016.

1. Opinion of the Directors

In the opinion of the board of directors, (a) the consolidated financial statements of the Group and the statement of financial position and statement

of changes in equity of the Company are drawn up so as to give a true and fair view of the financial position of the Group and of the Company as at 31 March 2016 and the financial performance, changes in equity and cash flows of the Group and changes in equity of the Company for the year ended on that date; and

(b) at the date of this statement there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due.

2. Directors The directors of the Company in office at the date of this statement are:

Mr Chee Kuan Tat, Ken Mr Clive Tan Che Koon Mr Chay Yiowmin Mr Charles Mac (appointed on 26 April 2016)

3. Arrangements to enable Directors to acquire shares and debentures Neither at the end of nor at any time during the financial year was the Company a party to any arrangement whose objects are, or one of whose objects is, to enable the directors of the Company to acquire benefits by means of the acquisition of shares or debentures of the Company or any other body corporate.

4. Directors’ interests in shares and debentures The following directors, who held office at the end of the financial year, had, according to the register of directors’ shareholdings, required to be kept under section 164 of the Singapore Companies Act, Chapter 50, an interest in shares and share options of the Company and related corporations (other than wholly‐owned subsidiaries) as stated below: Direct interest Deemed interest Name of directors

At the beginning of financial year or date of

appointment

At the end of financial year

At the beginning of financial year or date of

appointment

At the end of financial year

Ordinary shares of the Company Mr Chee Kuan Tat, Ken 86,640,000 86,800,000 73,800,000* 20,755,741** Mr Clive Tan Che Koon 65,360,000 65,459,639 73,800,000* 20,755,741**

otes

* Held in the name of 8 apital uities roup Ltd ** Held in the name of heshire nited Ltd

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4. Directors’ interests in shares and debentures (continued) There was no change in any of the above‐mentioned interests in the Company between the end of the financial year and 16 May 2016. Except as disclosed in this report, no director who held office at the end of the financial year had interests in shares, share options, warrants or debentures of the Company, or of related corporations, either at the beginning of the financial year, or date of appointment if later, or at the financial year.

5. Directors’ contractual benefits Except as disclosed in the financial statements, since the end of the previous financial year, no director of the Company has received or become entitled to receive a benefit by reason of a contract made by the Company or a related corporation with the director, or with a firm of which the director is a member, or with a company in which the director has a substantial financial interest.

6. Audit committee The audit committee (AC) carried out its functions in accordance with section 201B (5) of the Singapore Companies Act, Chapter 50, including the following: ‐ Reviewed the audit plans of the internal and external auditors of the Group and the Company, and reviewed the internal auditor’s evaluation of the adequacy of the Company’s system of internal accounting controls and the assistance given by the Group and the Company’s management to the external and internal auditors

‐ Reviewed the quarterly and annual financial statements and the auditor’s report on the annual financial statements of the Group and the Company before their submission to the board of directors

‐ Reviewed effectiveness of the Group and the Company’s material internal controls, including financial, operational and compliance controls and risk management via reviews carried out by the internal auditor

‐ Met with the external auditor, other committees, and management in separate executive sessions to discuss any matters that these groups believe should be discussed privately with the AC

‐ Reviewed legal and regulatory matters that may have a material impact on the financial statements, related compliance policies and programmes and any reports received from regulators

‐ Reviewed the cost effectiveness and the independence and objectivity of the external auditor ‐ Reviewed the nature and extent of non‐audit services provided by the external auditor ‐ Recommended to the board of directors the external auditor to be nominated, approved the compensation of the external auditor, and reviewed the scope and results of the audit

‐ Reported actions and minutes of the AC to the board of directors with such recommendations as the AC considered appropriate

The AC, having reviewed all non‐audit services provided by the external auditor to the Group, is satisfied that the nature and extent of such services would not affect the independence of the external auditor.

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4

7. Auditor Kong, Lim & Partners LLP has expressed its willingness to accept re‐appointment as auditor.

On behalf of the board of directors,

Mr Chee Kuan Tat, Ken Mr Clive Tan Che Koon Director Director

Singapore, 16 May 2016

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13A MacKenzie Road Singapore 228676 T: (65) 6227 4180 F: (65) 6324 0213

[email protected] www.konglim.com.sg



Independent Auditor’s Report To the Members of 8I Holdings Limited Report on the Consolidated Financial Statements We have audited the accompanying consolidated financial statements of 8I Holdings Limited (the “Company”) and its subsidiaries (the “Group”), which comprise the consolidated statement of financial position of the Group and the statement of financial position of the Company as at 31 March 2016, and the consolidated statement of comprehensive income, statement of changes in equity and statement of cash flows of the Group and statement of changes in equity of the Company for the year then ended, and a summary of significant accounting policies and other explanatory information. anagement s esponsibility for the onsolidated inancial tatements

Management is responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with the provisions of the Singapore Companies Act, Chapter 50 (the “Act”) and Singapore Financial Reporting Standards, and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair financial statements and to maintain accountability of assets. Auditor s esponsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the consolidated financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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13A MacKenzie Road Singapore 228676 T: (65) 6227 4180 F: (65) 6324 0213

[email protected] www.konglim.com.sg

6

Independent Auditor’s Report To the Members of 8I Holdings Limited (continued)

pinion

In our opinion, the consolidated financial statements of the Group and the statement of financial position and statement of changes in equity of the Company are properly drawn up in accordance with the provisions of the Act and Singapore Financial Reporting Standards so as to give a true and fair view of the financial position of the Group and of the Company as at 31 March 2016 and the financial performance, changes in equity and cash flows of the Group and changes in equity of the Company for the year ended on that date.

Report on Other Legal and Regulatory Requirements

In our opinion, the accounting and other records required by the Act to be kept by the Company and by those subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act.

KONG, LIM & PARTNERS LLP Public Accountants and Chartered Accountants

Singapore, 16 May 2016

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Consolidated Statement of Comprehensive Income For the financial year ended 31 March 2016



Group

Note

31.03.2016

17.05.2014 (date of

incorporation) to 31.03.2015

S$ S$ Revenue 4 22,226,095 10,669,319 Other income 4 10,606,975 141,167 Expenses: Administrative expenses (5,397,503) (2,443,986) Other operating expenses (6,541,498) (2,630,560) Finance costs (154,590) (7,168)

Share of results of associate (476,246) ‐ Profit before tax 5 20,263,233 5,728,772 Income tax expense 6 (1,456,030) (736,875)

Profit for the year 18,807,203 4,991,897 Other comprehensive income: Net fair value gain on available‐for‐sale financial assets 3,746,182 55,983 Foreign currency translation (9,094) ‐

Other comprehensive income for the year, net of tax 3,737,088 55,983 Total comprehensive income for the year 22,544,291 5,047,880 rofit attributable to Owners of the Company 18,582,431 4,791,691 Non‐controlling interest 224,772 200,206

18,807,203 4,991,897 Total comprehensive attributable to Owners of the Company 22,319,519 4,847,674 Non‐controlling interest 224,772 200,206

22,544,291 5,047,880 arnings per share cents per share Basic 7 5.20 1.70 Diluted 7 5.20 1.70

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

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Statements of Financial Position As at 31 March 2016

8

Group Company Note 31.3.2016 31.3.2015 31.3.2016 31.3.2015 S$ S$ S$ S$ Assets Current Assets Cash and cash equivalents 8 18,737,470 21,656,807 4,574,641 5,278,839 Trade and other receivables 9 3,134,231 2,030,660 23,553,051 24,632,403 Prepaid operating expenses 174,977 411,814 55,480 642 Investment securities 10 19,555,765 12,091,307 1,349,171 ‐ 41,602,443 36,190,588 29,532,343 29,911,884 Non‐current Assets Plant and equipment 11 632,579 214,052 ‐ ‐ Investment properties 12 148,667 208,667 ‐ ‐ Intangible assets 13 3,138,751 1,901,072 ‐ ‐ Investment in subsidiaries 14 ‐ ‐ 3,424,521 4,779,957 Investment in associates 15 1,885,151 959,696 ‐ ‐ Investment securities 10 13,713,260 814,201 ‐ ‐ 19,518,408 4,097,688 3,424,521 4,779,957 Total Assets 61,120,851 40,288,276 32,956,864 34,691,841 Liabilities Current Liabilities Trade and other payables 16 1,820,858 954,017 163,213 30,841 Hire purchase 16 59,840 22,477 ‐ ‐ Income tax payable 1,457,699 797,853 29,766 52,000 Unearned revenue 17 3,156,559 1,920,801 ‐ ‐ 6,494,956 3,695,148 192,979 82,841 Non‐current Liabilities Hire purchase 16 73,248 41,688 ‐ ‐ Unearned revenue 17 880,791 ‐ ‐ ‐ Deferred tax liabilities 18 11,344 41,331 ‐ ‐ 965,383 83,019 ‐ ‐ Total Liabilities 7,460,339 3,778,167 192,979 82,841 Net Assets 53,660,512 36,510,109 32,763,885 34,609,000 Equity Equity attributable to owners of the Company Share capital 19 30,736,966 30,983,691 30,736,966 30,983,691 Retained earnings 18,016,959 4,791,691 2,026,919 3,625,309 Other reserves 20 3,793,071 55,983 ‐ ‐ 52,546,996 35,831,365 32,763,885 34,609,000 Non‐controlling interests 1,113,516 678,744 ‐ ‐ Total Equity 53,660,512 36,510,109 32,763,885 34,609,000 The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

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Statements of Changes in Equity As at 31 March 2016



Attributable to owners of the Company

Other reserves

2016 Group

Note

Equity total

Equity attributable to owners of the Company,

total

Share capital

Retained earnings

Fair value reserve

Translation reserve

Non‐controlling interests

S$ S$ S$ S$ S$ S$ S$ Opening balance at 1.4.2015

36,510,109

35,831,365

30,983,691

4,791,691

55,983

‐

678,744

Profit for the year 18,807,203 18,582,431 ‐ 18,582,431 ‐ ‐ 224,772 ther comprehensive income

Net fair value gain on available‐for‐sale financial assets

3,746,182

3,746,182

‐

‐

3,746,182

‐

‐ Foreign currency translation (9,094) (9,094) ‐ ‐ ‐ (9,094) ‐ Other comprehensive income for the year, net of tax

3,737,088

3,737,088

‐

‐

3,746,182

(9,094)

‐

Total comprehensive income for the year

22,544,291

22,319,519

‐

18,582,431

3,746,182

(9,094)

224,772

ontributions by and distributions to o ners

Share buy‐backs 19 (246,725) (246,725) (246,725) ‐ ‐ ‐ ‐

Dividends on ordinary shares 28 (5,357,163) (5,357,163) ‐ (5,357,163) ‐ ‐ ‐ Total contributions by and distributions to owners

(5,603,888)

(5,603,888)

(246,725)

(5,357,163)

‐

‐

‐

hanges in o nership interests in subsidiaries

Incorporation of a subsidiary 210,000 ‐ ‐ ‐ ‐ ‐ 210,000 Total changes in ownership interests in subsidiaries

210,000

‐

‐

‐

‐

‐

210,000

Total transactions with owners in their capacity as owners

(5,393,888)

(5,603,888)

(246,725)

(5,357,163)

‐

‐

210,000

Closing balance at 31.3.2016

53,660,512

52,546,996

30,736,966

18,016,959

3,802,165

(9,094)

1,113,516


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10

Attributable to owners of the Company

Other reserves

2015 Group

Note

Equity total

Equity attributable to owners of the Company,

total

Share capital

Retained earnings

Fair value reserve

Translation reserve

Non‐controlling interests

S$ S$ S$ S$ S$ S$ S$ Opening balance at 17.5.2014 (date of incorporation)

116

116

116

‐

‐

‐

‐

Profit for the period 4,991,897 4,791,691 ‐ 4,791,691 ‐ ‐ 200,206 ther comprehensive income

Net fair value loss on available‐for‐sale financial assets

55,983

55,983

‐

‐

55,983

‐

‐ Other comprehensive income for the period, net of tax

55,983

55,983

‐

‐

55,983

‐

‐

Total comprehensive income for the period

5,047,880

4,847,674

‐

4,791,691

55,983

‐

200,206

ontributions by and distributions to o ners

Issuance of shares 19 26,114,998 26,114,998 26,114,998 ‐ ‐ ‐ ‐ Conversion of related party loans to shares

19

670,440

670,440

670,440

‐

‐

‐

‐

Conversion of other loans to shares

19

5,216,977

5,216,977

5,216,977

‐

‐

‐

‐

Share issuance expense 19 (1,018,840) (1,018,840) (1,018,840) ‐ ‐ ‐ ‐ Total contributions by and distributions to owners

30,983,575

30,983,575

30,983,575

‐

‐

‐

‐

hanges in o nership interests in subsidiaries

Acquisition of subsidiaries 516,844 ‐ ‐ ‐ ‐ ‐ 516,844 Disposal of subsidiaries (38,306) ‐ ‐ ‐ ‐ ‐ (38,306) Total changes in ownership interests in subsidiaries

478,538

‐

‐

‐

‐

‐

478,538

Total transactions with owners in their capacity as owners

31,462,113

30,983,575

30,983,575

‐

‐

‐

478,538


36,510,109

35,831,365

30,983,691

4,791,691

55,983

‐

678,744


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2016 Company

Note

Equity total

Share capital

Retained earnings

S$ S$ S$ Opening balance at 1.4.2015

34,609,000

30,983,691

3,625,309

Profit for the year, representing total comprehensive income for the year 3,758,773 ‐ 3,758,773 ontributions by and distributions to o ners

Share buy‐backs 19 (246,725) (246,725) ‐ Dividends on ordinary shares 28 (5,357,163) ‐ (5,357,163) Total transactions with owners in their capacity as owners (5,603,888) (246,725) (5,357,163) Closing balance at 31.3.2016

32,763,885

30,736,966

2,026,919

2015 Company

Note

Equity total

Share capital

Retained earnings

S$ S$ S$ Opening balance at 17.5.2014 (date of incorporation)

116

116

‐

Profit for the period, representing total comprehensive income for the period 3,625,309 ‐ 3,625,309 ontributions by and distributions to o ners

Issuance of shares 19 26,114,998 26,114,998

‐

Conversion of related party loans to shares 19 670,440 670,440 Conversion of other loans to shares 19 5,216,977 5,216,977 ‐ Share issuance expense 19 (1,018,840) (1,018,840) ‐ Total transactions with owners in their capacity as owners 30,983,575 30,983,57

5 ‐


34,609,000

30,983,69

1

3,625,309


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Consolidated Statement of Cash Flows For the financial year ended 31 March 2016

12

Group

Note

31.3.2016

17.5.2014 (date of


S$ S$ Operating activities Profit before income tax 20,263,233 5,728,772 Adjustments for: Gain from disposal of subsidiaries’ shares 4 (1,674,213) (3,880,841) Gain from sale of an associate’s shares 4 (9,442,476) ‐ Fair value loss/(gain) on held‐for‐trading investment securities 4 543,512 (1,156,086) Loss on sale of held‐for‐trading investment securities 4 604,723 34,089 Dividend income 4 (322,756) (225,476) Gain on re‐measurement of investment retained in former associate to fair value after partial disposal

4 (9,156,519) ‐

Interest income 4 (1,186,054) (8,182) Gain from bargain purchase 4 (48,503) (17,769) Depreciation of plant and equipment 5 219,748 102,315 Finance costs 154,590 7,168 Share of results of associates 476,246 ‐ Unrealised exchange gain 1,878 ‐ Total adjustments (19,829,824) (5,144,782) Operating cash flows before changes in working capital 433,409 583,990 Changes in working capital: Prepaid operating expenses 245,270 (411,764) Trade and other receivables (334,875) 236,075 Unearned revenue 2,116,549 1,020,863 Trade and other payables 724,434 498,508 Total changes in working capital 2,751,378 1,343,682 Cash flows generated from operations 3,184,787 1,927,672 Interest received 1,186,054 8,182 Finance costs paid (154,590) (7,168) Income taxes paid (826,171) (279,853) Net cash flows generated from operating activities 3,390,080 1,648,833 Investing activities Acquisition of subsidiaries by cash, net of cash acquired (1,970,416) (3,796,465) Acquisition of subsidiaries by shares swap, net of cash acquired ‐ 4,825,565 Incorporation of an associate (18,000) ‐ Proceeds from sale of shares in subsidiary, net of cash disposed ‐ 3,761,839 Proceeds from sale of shares in an associate 10,000,000 ‐ Dividend income 322,756 225,476 Purchase of plant and equipment (510,430) (82,678) Net purchase of investment securities (8,529,439) (5,242,080) Net cash flows used in investing activities (705,529) (308,343)

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Consolidated Statement of Cash Flows For the financial year ended 31 March 2016



Group

Note

31.3.2016

17.5.2014 (date of


S$ S$ Financing activities Dividend paid 28 (5,357,163) ‐ Share buy backs 19 (246,725) ‐ Issuance of shares 19 ‐ 21,335,041 Share issuance costs 19 ‐ (1,018,840) Net cash flows (used in)/from financing activities (5,603,888) 20,316,201 Net (decrease)/increase in cash and cash equivalents (2,919,337) 21,656,691 Cash and cash equivalents at the beginning of the year/period 21,656,807 116 Cash and cash equivalents at the end of the year/period 8 18,737,470 21,656,807


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Notes to the Financial Statements For the financial year ended 31 March 2016

14

1. Corporate information

8I Holdings Limited (the “Company”) is a limited liability company incorporated and domiciled in Singapore and is listed on the Australian Securities Exchange (ASX). The registered office and principal place of business of the Company is located at Goldbell Towers, 47 Scotts Road, #03‐03/04, Singapore 228233. The principal activities of the Company are management consulting and investment holding. The principal activities of the subsidiaries are disclosed in Note 14 to the financial statements.

2. Summary of significant accounting policies

2.1 Basis of preparation

The consolidated financial statements of the Group and the statement of financial position and statement of changes in equity of the Company have been prepared in accordance with Singapore Financial Reporting Standards (FRS). The financial statements have been prepared on the historical cost basis except as disclosed in the accounting policies below. The financial statements are presented in Singapore Dollar (SGD or S$).

2.2 Changes in accounting policies The accounting policies adopted are consistent with those of the previous financial year except in the current financial year, the Group has adopted all the new and revised standards which are effective for annual financial periods beginning on or after 1 April 2015. The adoption of these standards did not have any effect on the financial performance or position of the Group and the Company.

2.3 Standards issued but not yet effective

The Group has not adopted the following standards applicable to the Group that have been issued but not yet effective:

Description Effective for annual year beginning on or after

Amendments to FRS 27 Equity Method in Separate Financial Statements 1 January 2016 Amendments to FRS 16 and FRS 38 Clarification of Acceptable Methods of Depreciation and Amortisation

1 January 2016

Improvements to FRSs (November 2014) (a) Amendments to FRS 107 Financial Instruments: Disclosures 1 January 2016 (b) Amendments to FRS 19 Employee Benefits 1 January 2016 Amendments to FRS 110 and FRS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

1 January 2016

Amendments to FRS 1 Disclosure Initiative 1 January 2016

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2. Summary of significant accounting policies (continued)

2.3 Standards issued but not yet effective (continued)

Description Effective for annual year beginning on or after

Amendments to FRS 110, FRS 112 and FRS 28 Investment Entities: Applying the Consolidation Exception

1 January 2016

FRS 115 Revenue from Contracts with Customers 1 January 2017 FRS 109 Financial Instruments 1 January 2018

Except for FRS 115 and FRS 109, the directors expect that the adoption of the other standards above will have no material impact on the financial statements in the period of initial application. The nature of the impending changes in accounting policy on adoption of FRS 115 and FRS 109 are described below. FRS 115 Revenue from Contracts with Customers FRS 115 establishes a five‐step model that will apply to revenue arising from contracts with customers. Under FRS 115, revenue is recognised at an amount that reflects the consideration which an entity expects to be entitled in exchange for transferring goods or services to a customer. The principles in FRS 115 provide a more structured approach to measuring and recognising revenue when the promised goods and services are transferred to the customer i.e. when performance obligations are satisfied. Key issues for the Group include identifying performance obligations, accounting for contract modifications, applying the constraint to variable consideration, evaluating significant financing components, measuring progress toward satisfaction of a performance obligation, recognising contract cost assets and addressing disclosure requirements. Either a full or modified retrospective application is required for annual periods beginning on or after 1 January 2017 with early adoption permitted. The Group is currently assessing the impact of FRS 115 and plans to adopt the new standard on the required effective date. FRS 109 Financial Instruments FRS 109 introduces new requirements for classification and measurement of financial assets, impairment of financial assets and hedge accounting. Financial assets are classified according to their contractual cash flow characteristics and the business model under which they are held. The impairment requirements in FRS 109 are based on an expected credit loss model and replace the FRS 39 incurred loss model. Adopting the expected credit losses requirements will require the Group to make changes to its current systems and processes. The Group currently measures one of its investments in unquoted equity securities at cost. Under FRS 109, the Group will be required to measure the investment at fair value. Any difference between the previous carrying amount and the fair value would be recognised in the opening retained earnings when the Group apply FRS 109. FRS 109 is effective for annual periods beginning on or after 1 January 2018 with early application permitted. Retrospective application is required, but comparative information is not compulsory. The Group is currently assessing the impact of FRS 109 and plans to adopt the standard on the required effective date.

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2.4 Basis of consolidation and business combinations

Basis of consolidation

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at the end of the reporting period. The financial statements of the subsidiaries used in the preparation of the consolidated financial statements are prepared for the same reporting date as the Company. Consistent accounting policies are applied to like transactions and events in similar circumstances. All intra‐group balances, income and expenses and unrealised gains and losses resulting from intra‐group transactions and dividends are eliminated in full. Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. Losses within subsidiaries are attributed to the non‐controlling interest even if that results in a deficit balance. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it:

� De‐recognises the assets (including goodwill) and liabilities of the subsidiary at their carrying amounts at

the date when control is lost; � De‐recognises the carrying amount of any non‐controlling interest; � De‐recognises the cumulative transaction differences recorded in equity; � Recognises the fair value of the consideration received; � Recognises the fair value of any investment retained; � Recognises any surplus or deficit in profit or loss; � Re‐classifies the Group’s share of components previously recognised in other comprehensive income to

profit or loss or retained earnings, as appropriate.

Business combinations and goodwill Business combinations are accounted for by applying the acquisition method. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Acquisition‐related costs are recognised as expenses in the periods in which the costs are incurred and the services are received. Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability, will be recognised in profit or loss. The Group elects for each individual business combination, whether non‐controlling interest in the acquiree (if any), that are present ownership interests and entitle their holders to a proportionate share of net assets in the event of liquidation, is recognised on the acquisition date at fair value, or at the non‐controlling interest’s proportionate share of the acquiree’s identifiable net assets. Other components of non‐controlling interests are measured at their acquisition date fair value, unless another measurement basis is required by another FRS.

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2.4 Basis of consolidation and business combinations (continued) Any excess of the sum of the fair value of the consideration transferred in the business combination, the amount of non‐controlling interest in the acquiree (if any), and the fair value of the Group’s previously held equity interest in the acquiree (if any), over the net fair value of the acquiree’s identifiable assets and liabilities is recorded as goodwill. In instances where the latter amount exceeds the former, the excess is recognised as gain on bargain purchase in profit or loss on the acquisition date. Goodwill is initially measured at cost. Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to the Group’s cash‐generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the acquire are assigned to those units. The cash‐generating units to which goodwill have been allocated is tested for impairment annually and whenever there is an indication that the cash‐generating unit may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each cash‐generating unit (or group of cash‐generating units) to which the goodwill relates.

2.5 Transactions with non‐controlling interests Non‐controlling interest represents the equity in subsidiaries not attributable, directly or indirectly, to owners of the Company.

Changes in the Company owners’ ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. In such circumstances, the carrying amounts of the controlling and non‐controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non‐controlling interest is adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to owners of the Company.

2.6 Foreign currency The financial statements are presented in Singapore Dollars, which is also the Company’s functional currency. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.

Transactions and balances

Transactions in foreign currencies are measured in the respective functional currencies of the Company and its subsidiaries and are recorded on initial recognition in the functional currencies at exchange rates approximating those ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the end of the reporting period. Non‐monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non‐monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured.

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2.6 Foreign currency (continued)

Exchange differences arising on the settlement of monetary items or on translating monetary items at the end of the reporting period are recognised in profit or loss except for exchange differences arising on monetary items that form part of the Group’s net investment in foreign operations are recognised initially in other comprehensive income and accumulated under foreign currency translation reserve in equity. The foreign currency translation reserve is reclassified from equity to profit or loss of the Group on disposal of the foreign operation

Consolidated financial statements

For consolidation purpose, the assets and liabilities of foreign operations are translated into SGD at the rate of exchange ruling at the end of the reporting period and their profit or loss are translated at the exchange rates prevailing at the date of the transactions. The exchange differences arising on the translation are recognised in other comprehensive income. On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign operation is recognised in profit or loss. In the case of a partial disposal without loss of control of a subsidiary that includes a foreign operation, the proportionate share of the cumulative amount of the exchange differences are re‐attributed to non‐controlling interest and are not recognised in profit or loss. For partial disposals of associates or jointly controlled entities that are foreign operations, the proportionate share of the accumulated exchange differences is reclassified to profit or loss

2.7 Plant and equipment All items of plant and equipment are initially recorded at cost. Subsequent to recognition, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is computed on a straight‐line basis over the estimated useful lives of the assets as follows:

Years

Office Equipment 1 to 3 Furniture & Fittings 3 Motor Vehicle 5 The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. The residual value, useful life and depreciation method are reviewed at each financial year‐end, and adjusted prospectively, if appropriate. An item of plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on derecognition of the asset is included in profit or loss in the year the asset is derecognised.

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2.8 Investment properties

The investment properties are properties that are either owned by the Group in order to earn rentals or for capital appreciation, or both, rather than for use in the production or supply of goods or services, or for administrative purposes, or in the ordinary course of business. Investment properties comprise completed investment properties and properties that are being constructed or developed for future use as investment properties. Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at fair value which reflects market conditions at the end of the reporting period. Gains or losses arising from changes in the fair values of investment properties are included in profit or loss in the year in which they arise. Investment properties are derecognised when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gain or loss on the retirement or disposal of an investment property is recognised in profit or loss in the year of retirement or disposal.

2.9 Impairment of non‐financial assets The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when an annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash‐generating unit’s fair value less costs of disposal and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or cash‐generating unit exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Impairment losses of continuing operations are recognised in profit or loss, except for assets that are previously revalued where the revaluation was taken to other comprehensive income. In this case, the impairment is also recognised in other comprehensive income up to the amount of any previous revaluation. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increase cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised previously. Such reversal is recognised in profit or loss unless the asset is measured at revalued amount, in which case the reversal is treated as a revaluation increase.

2.10 Subsidiaries A subsidiary is an investee that is controlled by the Group. The Group controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has ability to affect these returns through its power over the investee. In the Company’s separate financial statements, investment in subsidiaries are accounted for at cost less impairment losses. On disposal of investment in subsidiaries, the difference between disposal proceeds and the carrying amounts of the investment are recognised in profit or loss.

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2.11 Associate An associate is an entity over which the Group has the power to participate in the financial and operating policy decisions of the investee but does not have control or joint control of those policies. The Group account for its investments in associates using the equity method from the date on which it becomes an associate. On acquisition of the investment, any excess of the cost of the investment over the Group’s share of the net fair value of the investee’s identifiable assets and liabilities is accounted as goodwill and is included in the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the investee’s identifiable assets and liabilities over the cost of the investment is included as income in the determination of the entity’s share of the associate’s profit or loss in the period in which the investment is acquired. Under the equity method, the investment in associates are carried in the statement of financial position at cost plus post‐acquisition changes in the Group’s share of net assets of the associates. The profit or loss reflects the share of results of the operations of the associates. Distributions received from associates reduce the carrying amount of the investment. Where there has been a change recognised in other comprehensive income by the associates, the Group recognises its share of such changes in other comprehensive income. Unrealised gains and losses resulting from transactions between the Group and associate are eliminated to the extent of the interest in the associates. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. After application of the equity method, the Group determines whether it is necessary to recognise an additional impairment loss on the Group’s investment in associate. The Group determines at the end of each reporting period whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognises the amount in profit or loss. The financial statements of the associates are prepared as the same reporting date as the Company. Where necessary, adjustments are made to bring the accounting policies in line with those of the Group. Upon loss of significant influence or joint control over the associate, the Group measures the retained interest at fair value. Any difference between the fair value of the aggregate of the retained interest and proceeds from disposal and the carrying amount of the investment at the date the equity method was discontinued is recognised in profit or loss. If the Group’s ownership interest in an associate is reduced, but the Group continues to apply the equity method, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognised in other comprehensive income relating to that reduction in ownership interest if that gain or loss would be required to be reclassified to profit or loss on the disposal of the related assets or liabilities.

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2.12 Financial Instruments

a) Financial assets

Initial recognition and measurement

Financial assets are recognised when, and only when, the Group becomes a party to contractual provisions of the financial instrument. The Group determines the classification of its financial assets at initial recognition. When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not at fair value through profit or loss, directly attributable transaction costs. All regular way purchases and sales of financial assets are recognised or derecognised on the trade date i.e. the date that the Group commits to purchase or sell the asset. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the period generally established by regulation or convention in the marketplace concerned. Subsequent measurement

The subsequent measurement of financial assets depends on their classification as follows: i inancial assets at fair value through profit or loss hich are held for trading

Financial assets at fair value through profit or loss include financial assets held for trading. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. This category includes derivative financial instruments entered into by the Group. Derivatives, including separated embedded derivatives are also classified as held for trading. Subsequent to initial recognition, financial assets at fair value through profit or loss are measured at fair value. Any gains or losses arising from changes in fair value of the financial assets are recognised in profit or loss. Net gains or net losses on financial assets at fair value through profit or loss include exchange differences, interest and dividend income. Derivatives embedded in host contracts are accounted for as separate derivatives and recorded at fair value if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not measured at fair value with changes in fair value recognised in profit or loss. These embedded derivatives are measured at fair value with changes in fair value recognised in profit or loss. Reassessment only occurs if there is a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required.

ii Loans and receivables

Non‐derivative financial assets with fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less impairment. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired, and through the amortisation process.

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2.12 Financial instruments (continued)

iii Available for sale financial assets

Available‐for‐sale financial assets include equity securities. Equity investments classified available for sale are those, which are neither classified as held for trading nor designated at fair value through profit or loss. After initial recognition, available for sale financial assets are subsequently measured at fair value. Any gains or losses from changes in fair value of the financial assets are recognised in other comprehensive income, except that impairment losses, foreign exchange gains and losses on monetary instruments and interest calculated using the effective interest method are recognised in profit or loss. The cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment when the financial asset is derecognised.

Investments in equity instruments whose fair value cannot be reliably measured are measured at cost less impairment loss. Derecognition A financial asset is derecognised where the contractual right to receive cash flows from the asset has expired. On de‐recognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received and any cumulative gain or loss that had been recognised in other comprehensive income is recognised in profit or loss.

b) Financial liabilities

Initial recognition and measurement Financial liabilities are recognised when, and only when, the Group becomes a party to the contractual provisions of the financial instrument. The Group determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognised initially at fair value plus in the case of financial liabilities not at fair value through profit or loss, directly attributable transaction costs. Subsequent measurement After initial recognition, financial liabilities that are not carried at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the liabilities are derecognised, and through the amortisation process. Derecognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.

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2.13 Impairment of financial assets

The Group assesses at each end of the reporting period whether there is any objective evidence that a financial asset is impaired. a) Financial assets carried at amortised cost

For financial assets carried at amortised cost, the Group first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be recognised are not included in a collective assessment of impairment. If there is objective evidence that an impairment loss on financial assets carried at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate computed at initial recognition). The carrying amount of the asset is reduced through the use of an allowance amount. The amount of the loss is recognised in the profit or loss.

When the asset becomes uncollectible, the carrying amount of impaired financial assets is reduced directly or if an amount was charged to the allowance account, the amounts charged to the allowance account are written off against the carrying value of the financial asset. To determine whether there is objective evidence that an impairment loss on financial assets has been incurred, the Group considers factors such as the probability of insolvency of significant financial difficulties of the debtor and default or significant delay in payments. If, in a subsequent year, the amount of the impairment loss decrease and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed. Any subsequent reversal of an impairment loss is recognised in the profit or loss, to the extent that the carrying value of the asset does not exceed its amortised cost at the reversal date.

b) Financial assets carried at cost If there is objective evidence (such as significant adverse changes in the business environment where the issuer operates, probability of insolvency or significant financial difficulties of the issuer) that an impairment loss on financial assets carried at cost had been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses are not reversed in subsequent periods.

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2.13 Impairment of financial assets (continued)

c) Available‐for‐sale financial assets

In the case of equity investments classified as available‐for‐sale, objective evidence of impairment include (i) significant financial difficulty of the issuer, (ii) information about significant changes with an adverse effect that have taken place in the technological, market, economic or legal environment in which the issuer operates, and indicates that the cost of the investment in equity instrument may not be recovered; and (iii) a significant or prolonged decline in the fair value of the investment below its costs. Significant is to be evaluated against the original cost of the investment and ‘prolonged’ against the period in which the fair value has been below its original cost.

If an available‐for‐sale financial asset is impaired, an amount comprising the difference between its acquisition cost (net of any principal repayment and amortisation) and its current fair value, less any impairment loss previously recognised in profit or loss, is transferred from other comprehensive income and recognised in profit or loss. Reversals of impairment losses in respect of equity instruments are not recognised in profit or loss; increase in their fair value after impairment are recognised directly in other comprehensive income.

2.14 Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand which are subject to an insignificant risk of changes in value.

2.15 Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount of the obligation can be estimated reliably. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed. If the effect of the time value of money is material, provisions are discounted using a current pre tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

2.16 Government grants

Government grants are recognised when there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. Where the grant relates to income, it shall be recognised in profit or loss on a systematic basis over the periods in which the entity recognises as expenses the related costs for which the grants are intended to compensate. Grants related to income may be presented as a credit in profit or loss, either separately or under a general heading such as “Other income”. Alternatively, they are deducted in reporting the related expenses. F

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2.17 Employee benefits

Defined contribution plans The Group participates in the national pension schemes as defined by the laws of the countries in which it has operations. In particular, the Singapore companies in the Group make contributions to the Central Provident Fund scheme in Singapore, a defined contribution pension scheme. Contributions to defined contribution pension schemes are recognised as an expense in the period in which the related service is performed.

2.18 Leases As lessee Finance leases which transfer to the Group substantially all the risks and rewards incidental to ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased asset or, if lower, at the present value of the minimum lease payments. Any initial direct costs are also added to the amount capitalised. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged to profit or loss. Contingent rents, if any, are charged as expenses in the periods in which they are incurred. Operating lease payments are recognised as an expense in profit or loss on a straight‐line basis over the lease term. The aggregate benefit of incentives provided by the lessor is recognised as a reduction of rental expense over the lease term on a straight‐line basis. As lessor Leases where the Group retains substantially all the risks and rewards of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same bases as rental income. The accounting policy for rental income is set out in Note 2.19. Contingent rents are recognised as revenue in the period in which they are earned.

2.19 Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured, regardless of when the payment is made. Revenue is measured at the fair value of the consideration received or receivable and represents amount receivable for goods and services provided in the normal course of business, net of discounts and sales related taxes. ‐ Revenue from rendering of services is recognised over the period the services are performed.

‐ Dividend income is recognised when the Group’s right to receive payment is established.

‐ Interest income is recognised using the effective interest method.

‐ Revenue from sale of books is recognised as the books are sold.

‐ Revenue from sales of investment property is recognised upon the transfer of significant risk and rewards of ownership of the property to the buyer and the amount of revenue and cost incurred or to be incurred in respect of the transaction can be measured reliably.

‐ Rental income is accounted for on a straight line basis over the lease terms.

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2.20 Taxes

Current income tax Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authority. The tax rates and tax laws used to compute the amount are those that are enacted at the end of the reporting period, in the country where the Group operates and generates taxable income. Current income taxes are recognised in profit or loss except to the extent that the tax relates to items recognised outside profit or loss, either in other comprehensive income or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax

Deferred tax is provided, using the liability method, on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets and liabilities are measured using the tax rates expected to apply to taxable in the years in which those temporary differences are expected to be recovered or settled based on tax rates. Deferred tax liabilities are recognised for all temporary differences, except: ‐ Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and

‐ In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, carry‐forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry‐forward of unused tax assets and unused tax losses can be utilised of except: ‐ Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and

‐ In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

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2.20 Taxes (continued) Sales tax

Revenues, expenses and assets are recognised net of the amount of sales tax except: x Where the sales tax incurred on a purchase of assets or services is not recoverable from the taxation

authority, in which case the sales tax is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and

x Receivables and payables that are stated with the amount of sales tax included.

The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position.

2.21 Share capital and share issuance expenses

Proceeds from issuance of ordinary shares are recognised as share capital in equity. Incremental costs directly attributable to the issuance of ordinary shares are deducted against share capital.

3. Significant accounting judgments and estimates

The preparation of the Group’s consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the end of each reporting period. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in the future periods.

3.1 Judgments made in applying accounting policies

In the process of applying the Group’s accounting policies, management has made the following judgements which have the most significant effect on the amounts recognised in the consolidated financial statements:

etermination of functional currency

The Group measures foreign currency transactions in the respective functional currencies of the Company and its subsidiaries. In determining the functional currencies of the entities in the Group, judgement is required to determine the currency that mainly influences sales prices for goods and services and of the country whose competitive forces and regulations mainly determines the sales prices of its goods and services. The functional currencies of the entities in the Group are determined based on management’s assessment of the economic environment in which the entities operate and the entities’ process of determining sales prices. Management has assessed that prices are mainly denominated and settled in the respective local currency of the entities of the Group. In addition, most of the entities’ cost base is mainly denominated in their respective local currency. Therefore, management concluded that the functional currency of the entities of the Group is their respective local currency.

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3. Significant accounting judgments and estimates (continued)

3.2 Key sources of estimation uncertainty The key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period are discussed below. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur. seful lives of plant and e uipment

The cost of plant and equipment is depreciated on a straight line basis over the plant and equipment’s useful lives. Management estimates the useful lives of these plant and equipment to be within 1 to 5 years. These are common life expectancies applied in the similar industry. Changes in the expected level of usage and technological developments could impact the economic useful lives and the residual values of these assets, therefore future depreciation charges could be revised. The carrying amount of the Group’s plant and equipment at 31 March 2016 was S$632,579 (2015: S$214,052). Impairment of loans and receivables The Group assesses at the end of each reporting period whether there is any objective evidence that a financial asset is impaired. To determine whether there is objective evidence of impairment, the Group considers factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments. Where there is objective evidence of impairment, the amount and timing of future cash flows are estimated based on historical loss experience for assets with similar credit risk characteristics. The carrying amount of the Group’s loans and receivables at the end of the reporting period is S$3,134,231 (2015: S$2,030,660).

air value of un uoted available for sale financial assets The fair values of unquoted available‐for‐sale financial assets are determined using valuation techniques including the discounted cash flow model. The inputs to these models are derived from observable market data where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. The assumptions applied in determination of the valuation of these unquoted available‐for‐sale financial assets and a sensitivity analysis are described in more detail in Note 24. The carrying amount of the Group’s unquoted available‐for‐sale financial assets as at 31 March 2016 was S$13,879 (2015: S$43,879).

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4. Revenue and other income Group

31.3.2016

17.5.2014 (date of


S$ S$ Revenue Program sales 7,033,556 4,007,575 Event site rental and event organisation income 4,014,724 1,278,456 Property development and rental income 886,605 154,974 Gain from disposal of subsidiaries’ shares* 1,674,213 3,880,841 Gain from sale of an associate’s shares 9,442,476 ‐ Fair value (loss)/gain on held‐for‐trading investment securities (543,512) 1,156,086 Loss on sale of held‐for trading investment securities (604,723) (34,089) Dividend income 322,756 225,476

22,226,095 10,669,319

Other income Gain on re‐measurement of investment retained in former associate to fair value after partial disposal** 9,156,519 ‐

Interest income from loans 1,186,054 8,182 Gain from bargain purchase 48,503 17,769 Others 215,899 115,216

10,606,975 141,167

Total revenue and other income 32,833,070 10,810,486 * During the financial year, the Group swapped all of its interest in its two subsidiaries, Vue at Red Hill Pty Ltd and Fusion 462 Pty Ltd, for shares in Velocity Holdings Pty Ltd resulting in a gain of S$1,674,213 from the share swap. ** The Group disposed part of its interest in an associate resulting in the loss of significant influence in the associate. Accordingly, the investment retained in the former associate is re‐classified as available‐for‐sale investment securities and re‐measured at fair value, as required by the Financial Reporting Standard, resulting in a fair value gain of S$9,156,519 (2015: Nil).

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5. Profit before tax The following items have been included in arriving at profit before tax: Group

31.3.2016

17.5.2014 (date of


S$ S$ Audit fees paid to: ‐ Auditors of the Company 65,879 42,851 ‐ Other auditors 30,277 ‐ Non‐audit fees paid to: ‐ Auditors of the Company ‐ 39,248 ‐ Other auditors ‐ 44,084 Depreciation of plant and equipment 219,748 102,315 Employee benefits expense (Note 21) 3,603,480 1,649,333 Operating lease expense (Note 23) 2,505,439 899,923 Travelling expense 212,752 50,092 Professional fees 248,227 133,892 Property profit sharing to co‐investors 897,681 ‐ Commission 286,659 166,545 Net foreign exchange loss 207,962 223,629

6. Income tax expense

Major components of income tax expense The major components of income tax expense for the years ended 31 March 2016 and 2015 are: Group

31.3.2016

17.5.2014 (date of


S$ S$ onsolidated income statement

Current income tax ‐ Current income taxation 1,434,048 736,875 ‐ Under provision in respect of previous years 42,612 ‐ Deferred income tax ‐ Origination and reversal of temporary difference (20,630) ‐

Income tax expense recognised in the income statement 1,456,030 736,875

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6. Income tax expense (continued) Relationship between tax expense and accounting profit A reconciliation between the tax expense and the product of accounting profit multiplied by the applicable corporate tax rate for the years ended 31 March 2016 and 2015 is as follows: Group

31.3.2016

17.5.2014 (date of


S$ S$ Profit before tax 20,263,233 5,728,772

Tax at the domestic rates applicable to profits in the countries where the Group operates 3,444,749 973,891

Adjustments: Non‐deductible expenses 124,913 41,181 Income not subject to taxation (2,051,099) (60,316) Effect of partial tax exemption and tax relief (186,107) (221,656) Deferred tax assets not recognised ‐ 3,775 Under provision in respect of previous years 42,612 ‐ Share of results of associates 80,962 ‐

1,456,030 736,875 The above reconciliation is prepared by aggregating separate reconciliations for each national jurisdiction. The nature of income that are not taxable for income tax purposes are as follows: Group

31.3.2016

17.5.2014 (date of


S$ S$ Gain from disposal of subsidiaries’ shares 1,674,213 ‐ Gain on re‐measurement of investment retained in former associate to fair value after partial disposal 9,156,519 ‐

Interest income from loans 1,186,054 ‐ Gain from bargain purchase 48,503 17,769 Dividend income ‐ 225,476 Others ‐ 111,555

12,065,289 354,800

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7. Earnings per share

The earnings per share is calculated by dividing the profit for the year attributable to owners of the Company by the weighted average number of ordinary shares for basic earnings per share computation. The following table reflects the profit and share data used in the computation of basic earnings per share for the years ended 31 March: Group

31.3.2016

17.5.2014 (date of


S$ S$ Profit, net of tax, attributable to owners of the Company used in the computation of earnings per share 18,582,431 4,791,691

No. of shares No. of shares Weighted average number of ordinary shares for earnings per share computation 357,113,926 281,226,184

8. Cash and cash equivalents Group Company

31.3.2016 31.3.2015 31.3.2016 31.3.2015 S$ S$ S$ S$

Cash at banks and on hand 18,737,470 21,656,807 4,574,641 5,278,839

Cash at banks earns interest at floating rates based on daily bank deposit rates. Cash denominated in foreign currencies at 31 March are as the follows:

Group Company

31.3.2016 31.3.2015 31.3.2016 31.3.2015 S$ S$ S$ S$

Australian Dollar 1,046,089 646,649 960,888 546,387 Malaysia Ringgit 723,133 ‐ ‐ ‐ United States Dollar 532,990 ‐ ‐ ‐ Chinese Yuan 451,261 ‐ ‐ ‐

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9. Trade and other receivables Group Company

31.3.2016 31.3.2015 31.3.2016 31.3.2015 S$ S$ S$ S$

Trade receivables 840,076 683,585 ‐ ‐ Deposits 524,522 376,581 2,759 ‐ Banker’s guarantee 190,000 190,000 ‐ ‐ Amounts due from subsidiaries ‐ ‐ 23,550,292 24,632,403 Amounts due from an associate 215,540 125,000 ‐ ‐ Amounts due from affiliated companies ‐ 502,478 ‐ ‐ Amounts due from third parties 819,600 ‐ ‐ ‐ Other receivables 544,493 153,016 ‐ ‐ Total trade and other receivables 3,134,231 2,030,660 23,553,051 24,632,403

Add: Cash and cash equivalents (Note 8) 18,737,470 21,656,807 4,574,641 5,278,839

Total loans and receivables 21,871,701 23,687,467 28,127,692 29,911,242 Trade receivables The trade receivables are non‐interest bearing and are generally on 30 days’ terms. They are recognised at their original invoice amounts which represent their fair values on initial recognition. Banker’s guarantee Banker’s guarantee represents guarantee as required by Global Payments in order to provide services in accordance to the merchants’ agreement. Related party balances Amounts due from subsidiaries, and affiliated companies are non‐trade related, unsecured, non‐interest bearing, repayable upon demand and are to be settled in cash. Amounts due from associate are non‐trade related, unsecured, bear interest of 7% per annum, repayable upon demand and are to be settled in cash.

Third party balances Amounts due from third parties are non‐trade related, unsecured, bear interest of 5% per annum, settled by 31 March 2017 and are to be settled in cash. Other receivables Amounts due from other receivables are non‐trade related, unsecured, non‐interest bearing, repayable upon demand and are to be settled in cash. F

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9. Trade and other receivables (continued) Receivables that are denominated in foreign currencies Receivables denominated in foreign currencies at 31 March are as follows:

Group Company

31.3.2016 31.3.2015 31.3.2016 31.3.2015 S$ S$ S$ S$

Malaysia Ringgit 513,990 359,737 309,606 359,737 Australian Dollar 215,540 ‐ ‐ ‐ Chinese Yuan 21,541 ‐ ‐ ‐ Receivables that are past due but not impaired

The Group has trade receivables amounting to S$469,353 (2015: S$366,421) that are past due at the end of the reporting period but not impaired. These receivables are unsecured and the analysis of their aging at the end of the reporting period is as follows: Group

31.3.2016 31.3.2015 S$ S$

Trade receivables past due but not impaired: Lesser than 30 days 95,954 96,245 30 – 60 days 127,860 137,901 More than 60 days 245,539 132,275

469,353 366,421

10. Investment securities Group Company

31.3.2016 31.3.2015 31.3.2016 31.3.2015 S$ S$ S$ S$

Current: Held for trading financial assets Equity securities (quoted) 19,555,765 12,091,307 1,349,171 ‐

Non‐current: Available for sale financial assets Equity securities (quoted) 13,699,381 770,322 ‐ ‐

Shares (unquoted), at cost 13,879 43,879 ‐ ‐

13,713,260 814,201 ‐ ‐ Available‐for‐sale financial assets, shares (unquoted), comprise investments in the ordinary issued capital of various entities. There are no fixed returns or fixed maturity dates attached to these investments.

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11. Plant and equipment

Office Equipment

Furniture and Fittings Motor Vehicle Total

Group S$ S$ S$ S$ Cost At 17.5.2014 (date of incorporation) ‐ ‐ ‐ ‐ Additions 10,929 61,077 95,800 167,806 Acquisition of subsidiaries 66,416 86,262 ‐ 152,678 Disposal of a subsidiary (768) (4,327) ‐ (5,095)

At 31.3.2015 and 1.4.2015 76,577 143,012 95,800 315,389 Additions 247,507 236,275 112,773 596,555 Acquisition of a subsidiary (Note 14) 12,983 30,615 ‐ 43,598 Exchange differences (894) (1,459) ‐ (2,353)

At 31.3.2016 336,173 408,443 208,573 953,189

Accumulated Depreciation At 17.5.2014 (date of incorporation) ‐ ‐ ‐ ‐ Charge for the period 56,213 41,312 4,790 102,315 Disposal of a subsidiary (543) (435) ‐ (978)

At 31.3.2015 and 1.4.2015 55,670 40,877 4,790 101,337 Charge of the year 152,236 32,764 34,748 219,748 Exchange differences (236) (239) ‐ (475)

At 31.3.2016 207,670 73,402 39,538 320,610 Net Carrying Amount At 31.3.2015 20,907 102,135 91,010 214,052 At 31.3.2016 128,503 335,041 169,035 632,579

During the financial year, the Group acquired motor vehicle amounting to S$86,125 (2015: S$85,128) by means of hire purchase. The cash outflow on acquisition of plant and equipment amounted to S$510,430 (2015: S$82,678).

The carrying amount of motor vehicle under hire purchase at the end of the reporting period was S$169,035 (2015: S$91,010). Leased assets are pledged as security for the related hire purchase (Note 16).

12. Investment properties Group

31.3.2016 31.3.2015 S$ S$

At 1 April 208,667 ‐ Addition from acquisition of a subsidiary ‐ 208,667 Disposal (60,000) ‐

At 31 March 148,667 208,667

There are no rental income nor direct operating expense arising from investment properties during the financial year. The Group has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment property or for repairs, maintenance or enhancements.

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12. Investment properties (continued) Valuation of investment properties The Group carries its investment property at fair value, with changes in fair value being recognised in profit or loss. There was no valuation during the financial year as the investment properties are still under development. The investment properties held by the Group as at 31 March 2016 are as follows: Description and Location

Existing Use

Tenure

Unexpired lease term

One unit of a mixed‐use office located at Dela Rosa Street in Manila, Philippines

Offices Freehold n/a

13. Intangible assets Group

31.3.2016 31.3.2015 S$ S$

Goodwill on acquisition At 1 April 1,901,072 ‐ Addition from acquisition of subsidiaries 1,237,679 3,441,621 Disposal of a subsidiary ‐ (1,540,549)

At 31 March 3,138,751 1,901,072

Impairment testing of goodwill Goodwill acquired through business combinations have been allocated to two cash‐generating units (CGU), which are also the reportable operating segments, for impairment testing as follows: ‐ Education and event segment ‐ Property segment The carrying amounts of goodwill allocated to each CGU are as follows: Education and event

segment

Property segment

Total 31.3.2016 31.3.2015 31.3.2016 31.3.2015 31.3.2016 31.3.2015 S$ S$ S$ S$ S$ S$ Goodwill 1,901,072 1,901,072 1,237,679 ‐ 3,138,751 1,901,072

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13. Intangible assets (continued) The recoverable amounts of the CGUs have been determined based on value in use calculations using cash flow projections from financial budgets approved by management covering a three‐year period. The pre‐tax discount rate applied to the cash flow projections and the forecasted growth rates used to extrapolate cash flow projections beyond the three‐year period are as follows: Education and event

segment

Property segment 31.3.2016 31.3.2015 31.3.2016 31.3.2015 Growth rates 2% 2% 3% ‐ Pre‐tax discount rates 5% 5% 10% ‐ Key assumptions used in the value in use calculation The calculations of value in use for the CGUs are most sensitive to the following assumptions: Budgeted gross margins – Gross margins are based on average values achieved in the three years preceding the start of the budget period. These are increased over the budget period for anticipated efficiency improvements. An increase of 2% per annum has been applied. Growth rates – The forecasted growth rates are based on management’s estimate using rates from existing binding contracts, property development projects and property price index. Pre‐tax discount rates – Discount rates represent the current market assessment of the risks specific to the CGU, regarding the time value of money and individual risks of the underlying assets which have not been incorporated in the cash flows estimates. The discount rate calculation is based on the specific circumstances of the Group and derived from its weighted average cost of capital (WACC). The WACC takes into account both debt and equity. The cost of equity is derived from the expected return on investment by the Group’s investors. The cost of debt is based on the interest bearing borrowings the Group is obliged to service. Market share assumptions – These assumptions are important because, as well as using management’s estimate for growth rates (as noted above), management assesses how the CGUs’ position, relative to its competitors, might change over the budget period. Management expects the Group’s share of the event and property markets to be stable over the budget period. Sensitivity to changes in assumptions With regards to the assessment of value in use for the property segment, management believes that no reasonably possible changes in any of the above key assumptions would cause the carrying value of the unit to materiality exceed its recoverable amount. For the education and event segment, the estimated recoverable amount exceeds its carrying amount by approximately S$250,000 (2015: S$250,000) and, consequently, any adverse change in a key assumption would result in a further impairment loss. The implication of the key assumption for the recoverable amount is discussed below: Growth rates – Management recognises that the possibility of new entrance can have a significant impact on growth rate assumptions. The effect of new entrance is not expected to have an adverse impact on the forecasts, but could yield a reasonably possible alternative to the estimated long‐term growth rate of 2% (2015: 2%). A reduction of 0.5% (2015: 0.5%) in the long‐term growth rate would result in a further impairment.

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14. Investment in subsidiaries Company

31.3.2016 31.3.2015 S$ S$

Shares, at cost 100 ‐ Issuance of shares for acquisition of subsidiaries 4,779,957 4,779,957 Impairment losses (1,355,536) ‐

3,424,521 4,779,957 Composition of the Group The Group has the following significant investments in subsidiaries.

Name of subsidiaries

Country of incorporation/ operation

Principal activities

Effective interest held 31.3.2016 31.3.2015 Held by the ompany 8 Investment Pte. Ltd.1 Singapore Investment dealings and

management consultancy service 100% 100%

8 Capital Pte. Ltd.1 Singapore

Investment trading 100% 100%

8 Business Pte. Ltd.1 Singapore

Private equity investment 100% 100%

8I Education (S) Pte. Ltd.2 Singapore

Seminars and programs organiser 100% 100%

8I Media Pte. Ltd.2 Singapore


8 Property Pte. Ltd.1,7 Singapore


8 Property PLS Pte. Ltd.1,7 Singapore

Property and management consultancy service

100% 100%

8IH Global Limited3 Mauritius Investment trading 100% ‐ Held through 8 Investment te. Ltd. Oxford Views Pte. Ltd.1 Singapore Property and management

consultancy services

100% ‐

Fusion 462 Pte. Ltd.1 Singapore Property and management consultancy services

100% ‐

Vue at Red Hill Pte. Ltd.1 Singapore Property and management consultancy services

100% ‐

Held through xford ie s te. Ltd. Oxford Views Pty Ltd Australia Property investment 100% ‐ Held through 8I ducation te. Ltd. 8IH China Pte. Ltd.2,4 Singapore Business and management

consultancy services

65% ‐

8I Education (M) Sdn Bhd5 Malaysia Seminars and programs organiser 100% ‐

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14. Investment in subsidiaries (continued)

Name of subsidiaries

Country of incorporation/ operation


Effective interest held 31.3.2016 31.3.2015 Held through 8IH hina te. Ltd. 8I Education (Shanghai) 信益安（上海）实业有限公司 6

People’s Republic of China

Business and management consultancy services

65% ‐

Held through 8 usiness te. Ltd. Hemus Pacific Private

Limited1 Singapore Event organiser 51% 51%

1 Audited by LI A T LL ingapore 2 Audited by I AT H LL ingapore 3 Incorporated on anuary unaudited 4 Incorporated on uly 5 Audited by ALA A IATI alaysia 6 Incorporated on ecember unaudited 7 ormant

Interest in subsidiaries with material non‐controlling interest (NCI) The Group has the following subsidiaries that have NCI that are material to the Group.

Name of subsidiary

Principal place of business

Proportion of ownership

interest held by non‐controlling

interest

Profit/(loss) allocated to NCI during

the reporting period

Accumulated NCI at the end of

reporting period

Dividends paid to NCI

S$ S$ S$ 31 March 2016: 8IH China (Shanghai) Co. Ltd 信益安（上海）实业有限公司

People’s Republic of China

35% 10,198 220,198 ‐

Hemus Pacific Private Limited Singapore 49% 214,574 893,318 ‐ 31 March 2015: Hemus Pacific Private Limited Singapore 49% 153,266 678,744 ‐ Significant restrictions: The nature and extent of significant restrictions on the Group’s ability to use or access assets and settle liabilities of subsidiaries with material non‐controlling interests are: Cash and cash equivalents of S$839,156 (2015: Nil) held in People’s Republic of China are subject to local exchange control regulations. These regulations places restriction on the amount of currency being exported other than through dividends.

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14. Investment in subsidiaries (continued) Summarised financial information about subsidiaries with material NCI Summarised financial information including goodwill on acquisition and consolidation adjustments but before intercompany eliminations of subsidiaries with material non‐controlling interests are as follows: Summarised statements of financial position

Hemus Pacific Private Limited 8IH China (Shanghai) Co. Ltd 信益安（上海）实业有限公司

31.3.2016 31.3.2015 31.3.2016 31.3.2015 S$ S$ S$ S$

Current Assets 2,304,172 2,063,694 835,872 ‐ Liabilities (633,990) (808,665) (207,509) ‐ Net current assets 1,670,182 1,255,029 628,363 ‐

Non‐current Assets 154,261 131,510 773 ‐ Liabilities (1,344) (1,344) ‐ ‐ Net non‐current assets 152,917 130,166 773 ‐ Net assets 1,823,099 1,385,195 629,136 ‐

Summarised statement of comprehensive income


31.3.2016

17.5.2014 (date of

incorporation) to 31.3.2015 31.3.2016

17.5.2014 (date of


S$ S$ S$ S$

Revenue 4,014,724 1,278,456 215,167 ‐ Profit before income tax 508,155 312,788 57,436 ‐ Income tax expense (70,251) ‐ (527) ‐ Profit after tax representing total comprehensive income 437,904 312,788 56,909 ‐

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14. Investment in subsidiaries (continued) Other summarised information


31.3.2016

17.5.2014 (date of

incorporation) to 31.3.2015 31.3.2016

17.5.2014 (date of


S$ S$ S$ S$

Net cash flows from operations 582,476 323,771 57,436 ‐ Acquisition of significant plant and equipment 95,476 ‐ 773 ‐

Acquisition of Oxford Views Pte. Ltd., Fusion 462 Pte. Ltd. and Vue at Red Hill Pte. Ltd. On 30 June 2015 (the acquisition date), the Company’s subsidiary, 8 Investment Pte. Ltd., acquired 100% equity interest in Fusion 462 Pte. Ltd., Oxford Views Pte. Ltd. and Vue at Red Hill Pte. Ltd. (the “Velocity Group”) for a consideration of A$2,329,207. The Velocity Group together owns 100% of Fusion 462 Pty Ltd, Oxford Views Pty Ltd and Vue at Red Hill Pty Ltd. Subsequent to the acquisition, the Group swapped all of its interest in Fusion 462 Pty Ltd and Vue at Red Hill Pty Ltd for 49.9% stake in Velocity Holdings Pty Ltd. Velocity Group is a vibrant, young boutique property developer that specialises in cosmopolitan developments throughout South‐East Queensland, Australia. The acquisition of the Velocity Group is in line with the Company’s Value Investment strategy of investing in growth opportunities while allowing existing management to run the day to day operations. This acquisition will allow the Company to invest directly in property development in Australia and to acquire high quality real estate assets to hold and lease to generate rental revenue.

The fair value of the identifiable assets and liabilities of the Velocity Group as at the acquisition date were:

Fair value recognised on acquisition

S$

Investment in associates 807,652 Trade and other receivables 1,069,332 Loans to associates 4,795,398 Cash and cash equivalents 52,839

6,725,221 Trade and other payables (3,832,000) Loan from ultimate holding company (1,708,525)

(5,540,525)

Total identifiable net assets at fair value 1,184,696 Goodwill arising from acquisition 1,237,679

2,422,375

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42

14. Investment in subsidiaries (continued)


S$ Consideration transferred for the acquisition of the Velocity Group Cash paid, representing the total consideration transferred 2,422,375

Effect of the acquisition of Velocity Group on cash flows Total consideration for 100% equity interest acquired settled in cash 2,422,375 Less: Cash and cash equivalents of subsidiaries acquired (52,839)

Net cash outflow on acquisition 2,369,536

Trade and other receivables acquired Trade and other receivables acquired with fair value of S$1,069,332 is expected to be collected. Loans to associates Loans to associates of S$4,795,399 are secured by associates’ assets, bear interest of 12.68% to 20.00% per annum, repayable upon demand and are to be settled in cash. These loans were fully repaid as at 31 March 2016. Goodwill arising from acquisition The goodwill of S$1,237,678 comprises the value of providing the Group with access to property development in Australia. None of the goodwill recognised is expected to be deductible for income tax purposes. Impact of the acquisition on profit and loss From the acquisition date, the Velocity Group has contributed S$2,457,320 of revenue and S$1,228,043 to the Group’s profit after tax for the financial year. If the business combination had taken place on 1 April 2015, the Group’s revenue would have been S$22,800,000 and the Group’s profit, net of tax would have been S$19,400,000.

Acquisition of 8I Education (M) Sdn Bhd On 3 July 2015 (the acquisition date), the Company’s subsidiary, 8I Education (S) Pte. Ltd., acquired 100% equity interest in 8I Education (M) Sdn Bhd (the “8IE Malaysia”) for a consideration of S$126,618, as part of the Company’s regional expansion plans. 8IE Malaysia operates as an events management consultant and provides financial education and training seminars in major cities across Malaysia since 2011. The acquisition of 8IE Malaysia is in line with the Company’s Value Investment strategy of investing in growth opportunities in the education market. F

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14. Investment in subsidiaries (continued) The fair value of the identifiable assets and liabilities of 8IE Malaysia as at the acquisition date were:


S$

Plant and equipment 43,598 Investment securities 53,385 Prepaid operating expenses 8,433 Trade and other receivables 98,278 Cash and cash equivalents 525,738

729,432

Unearned revenue (114,013) Trade and other payables (440,298)

(554,311)

Total identifiable net assets at fair value 175,121 Gain from bargain purchase (48,503)

126,618

Consideration transferred for the acquisition of the 8IE Malaysia Cash paid, representing the total consideration transferred 126,618

Effect of the acquisition of Velocity Group on cash flows Total consideration for 100% equity interest acquired settled in cash 126,618 Less: Cash and cash equivalents of subsidiaries acquired (525,738)

Net cash inflow on acquisition (399,120) Trade and other receivables acquired Trade and other receivables acquired with fair value of S$98,278 is expected to be collected. Unearned revenue This represents revenue received from customers but not yet recognised to the profit or loss due to service not yet rendered as at reporting date. Gain from bargain purchase A gain from bargain purchase of S$48,503 has been recognised as other income in the current financial period. The gain recognised is not expected to be taxable for income tax purposes.

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14. Investment in subsidiaries (continued) Impact of the acquisition on profit and loss From the acquisition date, 8IE Malaysia has contributed S$945,940 of revenue and S$160,337 to the Group’s profit after tax for the financial year. If the business combination had taken place on 1 April 2015, the revenue from operations would have been S$22,400,000 and the Group’s profit from operations, net of tax would have been S$18,800,000.

15. Investment in associates The Group’s investments in associates are summarized below: Group

31.3.2016 31.3.2015 S$ S$

Velocity Holdings Pty Ltd 1,884,630 ‐ Singapore Fuller International Holding Group Pte. Ltd. 521 ‐ CPA Academy Pte. Ltd. ‐ 959,696

1,885,151 959,696

Name

Country of incorporation


Proportion (%) of ownership interest

31.3.2016 31.3.2015 Held through subsidiaries Velocity Holdings Pty Ltd

Australia Property developer 49.9%* ‐

Singapore Fuller International Holding Group Pte. Ltd.i

Singapore Business and management consultancy services

33.3% ‐

CPA Academy Pte. Ltd.i Singapore IT business and seminars organiser

‐** 31%

i Audited by LI A T LL ingapore. * The roup has significant influence on elocity Holdings ty Ltd but does not have control over the business of the associate. ** The roup s apped all of its interest in A Academy te. Ltd. for shares in igimatic roup Limited and subse uently disposed part of its interest in igimatic roup Ltd resulting in the loss of significant influence in the associate. Accordingly the investment retained in the former associate is re classified as available for sale financial assets. The activities of the associates are strategic to the Group activities.

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15. Investment in associates (continued)

Aggregate information about the Group’s investments in associates that are not individually material are as follows: Group

31.3.2016 31.3.2015 S$ S$

Profit or loss after tax representing total comprehensive income 160,280 959,696

The summarised consolidated financial information in respect of Velocity Holdings Pty Ltd and its subsidiaries, based on its FRS financial statements and a reconciliation with the carrying amount of the investment in the consolidated financial statements are as follows: ummarised statement of financial position

Velocity Holdings Pty Ltd and

its subsidiaries

31.3.2016 31.3.2015 S$ S$

Current assets 12,224,430 ‐ Non‐current assets excluding goodwill 14,195,555 ‐ Goodwill 6,584,154 ‐ Total assets 33,004,139 ‐ Current liabilities (3,253,915) ‐ Non‐current liabilities (24,051,679) ‐ Total liabilities (27,305,594) ‐ Net assets 5,698,545 ‐ Net assets excluding goodwill (1,568,773) Proportion of the Group’s ownership 49.9% ‐ Group’s share net assets (782,818) ‐ Goodwill on acquisition 1,884,630 ‐ Other adjustments 782,818 ‐ Carrying amount of the investment 1,884,630 ‐ ummarised statement of comprehensive income

Velocity Holdings Pty Ltd and

its subsidiaries

31.3.2016 31.3.2015 S$ S$

Revenue 14,913,949 Loss after tax representing total comprehensive income (1,196,864) ‐

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16. Trade and other payables Group Company

31.3.2016 31.3.2015 31.3.2016 31.3.2015 S$ S$ S$ S$

Trade payables 51,581 53,894 10,130 18,441 Accrued operating expenses 848,297 342,096 128,155 12,400 Deposits received 154,106 183,876 ‐ ‐ GST payable 203,518 149,393 ‐ ‐ Amounts due to related parties ‐ 181,342 ‐ ‐ Amounts due to third party 463,636 ‐ ‐ ‐ Other payables 99,720 43,416 24,928 ‐

Trade and other payable 1,820,858 954,017 163,213 30,841 Hire purchase 133,088 64,165 ‐ ‐ Total trade and other payables, representing financial liabilities carried at amortised cost 1,953,946 1,018,182 163,213 30,841

Trade and other payables These amounts are non‐interest bearing. Trade and other payables are normally settled on 30‐day terms. Trade payables denominated in foreign currencies as at 31 March are as follows:

Group Company

31.3.2016 31.3.2015 31.3.2016 31.3.2015 S$ S$ S$ S$

Australian Dollar 4,600 ‐ ‐ ‐ Chinese Yuan 7,732 ‐ ‐ ‐ Malaysia Ringgit 94,529 ‐ ‐ ‐ Amounts due to related parties These amounts are non‐trade related, unsecured, non‐interest bearing, repayable on demand and are to be settled in cash. Amounts due to third party These amounts are non‐trade related, unsecured, bear interest of 5% per annum, repayable on 31 March 2017 and are to be settled in cash.

Hire purchase This amount is secured by a charge over the leased assets (Note 11). The effective interest of the lease is between 2.28% to 2.83% per annum (2015: 2.28% per annum). This hire purchase is denominated in Singapore Dollars.

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16. Trade and other payables (continued) Minimum lease payments and present value of the minimum lease payments are as follows: Minimum lease payments Present value of payments

31.3.2016 31.3.2015 31.3.2016 31.3.2015 S$ S$ S$ S$

Group Not later than one year 64,346 25,047 59,840 22,477 Later than one year but not later than five years 85,555 43,507 73,248 41,688

Total minimum lease payments 149,901 68,554 133,088 64,165 Less: Amounts representing finance charges (16,813) (4,389) ‐ ‐

Present value of minimum lease payments 133,088 64,165 133,088 64,165

17. Unearned revenue Group

31.3.2016 31.3.2015 S$ S$

Unearned revenue (current) 3,156,559 1,920,801 Unearned revenue (non‐current) 880,791 ‐

4,037,350 1,920,801

This represents revenue received from customers but not yet recognised to the profit or loss due to service not yet rendered as at reporting date.

18. Deferred tax liabilities Group

31.3.2016 31.3.2015 S$ S$

Differences in depreciation for tax purposes 11,344 2,831 Difference in fair value reserve for available‐for‐sale securities for tax purposes ‐ 38,500

11,344 41,331

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19. Share capital Group and Company

31.3.2016 31.3.2015

No. of shares S$ No. of shares S$ Issued and fully paid ordinary shares At 1 April / date of incorporation 357,144,200 30,983,691 100,000,000 116 Share buy‐backs (250,000) (246,725) ‐ ‐ Issuance of shares ‐ 168,814,665 26,114,998 Conversion of related party loans to shares ‐ ‐ 58,329,535 670,440 Conversion of other loans to shares ‐ ‐ 30,000,000 5,216,977 Share issuance expense ‐ ‐ ‐ (1,018,840)

At 31 March 356,894,200 30,736,966 357,144,200 30,983,691 The shareholders of ordinary shares are entitled to receive dividends as and when declared by the Company. All ordinary shares carry one vote per share without restrictions. The ordinary shares have no par value. During the financial year, the Company made on‐market share buy‐backs of 250,000 ordinary shares (2015: Nil) for a total consideration of S$246,725 (2015: Nil).

20. Other reserves

Fair value reserve

Fair value reserve represents the cumulative unrealised fair value changes, net of tax, of available‐for‐sale financial assets until they are disposed of or impaired.

Foreign currency translation reserve

The foreign currency translation reserve represents exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from that of the Group’s presentation currency.

21. Employee benefits Group

31.3.2016

17.5.2014 (date of


S$ S$ Employee benefits expense (including directors): Salaries, bonuses and fees 3,229,177 1,507,991 Central Provident Fund contributions and pensions 300,891 126,330 Other short‐term benefits 73,412 15,012

3,603,480 1,649,333

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22. Related parties transactions Related parties comprise mainly companies which are controlled or significantly influenced by the Group’s key management personnel and their close family members.

a) Sale and purchase of goods and services

In additional to the related party information disclosed elsewhere in the financial statements, the following significant transactions between the Group and related parties took place at terms agreed between the parties during the financial period:

Group

31.3.2016

17.5.2014 (date of


S$ S$ Professional fees paid to an affiliated company 61,147 117,473 Consultation income from associates 201,691 ‐ Interest income from associates 1,139,651 ‐ Sale of course materials to an affiliated company 26,628 140,939

b) Compensation of key management personnel Group

31.3.2016

17.5.2014 (date of


S$ S$ Salaries, bonuses and fees 1,199,139 846,682 Central Provident Fund contributions 67,014 35,860

1,266,153 882,542

omprise amounts paid to Directors of the Company 659,216 670,777 Other key management personnel 606,937 211,765

1,266,153 882,542 F

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23. Commitments and contingent liabilities Operating lease commitments – as lessee The Group has entered into commercial leases on event spaces and office premises. These leases have tenures of 6 months to 3 years with no renewal option or contingent rent provision included in the contracts. The Group is restricted from subleasing the office premises to third parties. Minimum lease payments recognised as expense in the income statement for the financial period ended 31 March 2016 amounted to S$2,505,439 (2015: S$899,923). Future minimum rental payable under non‐cancellable operating leases at the end of the reporting period are as follows: Group

31.3.2016 31.3.2015

S$ S$ Not later than one year 1,015,000 1,368,000 Later than one year but not later than five years 1,355,000 247,000

2,370,000 1,615,000 Contingent liabilities Except as disclosed in the financial statements, the Group does not have any significant contingent liability at the end of the financial period.

24. Fair value of assets and liabilities a) Fair value hierarchy

The Group categorised fair value measurements using a fair value hierarchy that is dependent on the valuation inputs used as follows: ‐ Level 1 – Quoted prices (unadjusted) in active market for identical assets or liabilities that the Group can access at the measurement date,

‐ Level 2 – Inputs other that quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, and

‐ Level 3 – Unobservable inputs for the asset or liability.

Fair value measurements that use inputs of different hierarchy levels are categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

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24. Fair value of assets and liabilities (continued)

b) Financial instruments measured at fair value The following table shows an analysis of each class of financial instruments measured at fair value at the end of the reporting period: Fair value measurements at the end of the reporting period using

Quoted prices in active markets for identical instruments

(Level 1)

Significant observable inputs other than quoted

prices

(Level 2)

Significant unobservable

inputs

(Level 3)

Total

Group As at 31.3.2016 S$ S$ S$ S$ Assets measured at fair value Financial assets: Held‐for‐trading financial assets Quoted equity securities 19,555,765 ‐ ‐ 19,555,765 Available‐for‐sale financial assets Quoted equity securities 13,699,381 ‐ 13,879 13,713,260

33,255,146

‐

13,879

33,269,025 Non‐financial assets: Investment properties Commercial ‐ ‐ 148,667 148,667 As at 31.3.2015 Assets measured at fair value Financial assets: Held‐for‐trading financial assets Quoted equity securities 12,091,307 ‐ ‐ 12,091,307 Available‐for‐sale financial assets Quoted equity securities 770,322 ‐ ‐ 770,322 Unquoted equity securities ‐ ‐ 43,879 43,879

12,861,629

‐

43,879

12,905,508 Non‐financial assets: Investment properties Commercial ‐ ‐ 148,667 148,667 Residential ‐ ‐ 60,000 60,000 ‐ ‐ 208,667 208,667

Included within Level 1 of the hierarchy are listed investments. The fair value of these financial assets has been based on the closing quoted bid prices at the end of the reporting period, excluding transaction cost.

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24. Fair value of assets and liabilities (continued)

c) Level 3 fair value measurements i) Information about significant unobservable inputs used in Level 3 fair value measurements

The following table shows the information about fair value measurements using significant unobservable inputs (Level 3) Description

Fair value as at 31.3.2016

Valuation techniques

Unobservable inputs

Range

Recurring fair value measurements Available‐for‐sale financial assets: Unquoted equity securities 13,879 Market

comparable approach

Yield adjustments based on management’s assumptions*

5%

Investment properties Commercial 148,667 Market

comparable approach


5%

*The yield adjustments are made for any difference in the nature, location or condition of the specific property. Description

Fair value as at 31.3.2015

Valuation techniques

Unobservable inputs

Range

Recurring fair value measurements Available‐for‐sale financial assets: Unquoted equity securities 43,879 Market

comparable approach


5%

Investment properties Commercial 148,667 Market

comparable approach


5%

Residential 60,000 Market comparable approach


5%

*The yield adjustments are made for any difference in the nature, location or condition of the specific property. For unquoted equity securities and investment properties, a significant increase (decrease) in yield adjustments based on management’s assumptions would result in a significantly lower (higher) fair value measurement.

ii) Movements in Level 3 assets measured at fair value There are no movements in Level 3 assets measured at fair value during the reporting period.

iii) Valuation policies and procedures The Group’s Chief Financial Officer (CFO) oversees the Group’s financial reporting valuation process and is responsible for setting and documenting the Group’s valuation policies and procedures. Significant changes in fair value measurements from period to period are evaluated for reasonableness. Key drivers of the changes are identified and assessed for reasonableness against relevant information from independent sources, or internal sources if necessary and appropriate.

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25. Financial risk management objectives and policies

The Group and the Company is exposed to financial risks arising from its operations and the use of financial instruments. The key financial risks include credit risk, market price risk and liquidity risk. The board of directors reviews and agrees policies and procedures for the management of these risks, which are executed by the Chief Financial Officer. The audit committee provides independent oversight to the effectiveness of the risk management process.

The following sections provide details regarding the Group’s and Company’s exposure to the above‐mentioned financial risks and the objectives, policies and processes for the management of these risks.

Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty default on its obligations. The Group’s and the Company’s exposure to credit risk arises primarily from trade and other receivables. For other financial assets (including investment securities and cash and cash equivalents), the Group and the Company minimise credit risk by dealing exclusively with high credit rating counterparties. The Group’s objective is to seek continual revenue growth while minimising losses incurred due to increased credit risk exposure. The Group trades only with recognised and creditworthy third parties. In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant. The Group minimised its credit risk through investing surplus funds in financial institutions that maintain a high credit rating or in entities that the finance committee has otherwise assessed as being financially sound. Where the Group is unable to ascertain a satisfactory credit risk profile in relation to a customer or counterparty, the risk may be further managed through title retention clauses over goods or obtaining security by way of personal or commercial guarantees over assets of sufficient value which can be claimed against in the event of any default.

redit risk exposures

The maximum exposure to credit risk by class of recognised financial assets at the end of the reporting period, excluding the value of any collateral or other security held, is equivalent to the carrying amount and classification of those financial assets (net of any provisions) as presented in the statement of financial position. Credit risk related to balances with banks and other financial institutions is managed in accordance with approved board policy. Such policy requires that surplus funds are only invested with counterparties with a Standard and Poor’s rating of at least AA‐. The following table provides information regarding the credit risk relating to cash and money market securities based on Standard and Poor’s counterparty credit ratings:

Group Company

31.3.2016 31.3.2015 31.3.2016 31.3.2015 S$ S$ S$ S$

Cash at banks and on hand 18,737,470 21,656,807 4,574,641 5,278,839

The Group has no significant concentration of credit risk with any single counterparty or group counterparties. Trade and other receivables that are neither past due nor impaired are with creditworthy debtors with good payment record with the Group.

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25. Financial risk management objectives and policies (continued)

Market risk

i. Interest rate and foreign currency risk

The Group’s exposure to interest rate and foreign currency risk arises on financial assets and financial liabilities recognised at the end of the reporting period whereby a future change in interest rates or foreign currency will affect future cash flows or the fair value of fixed rate financial instruments. The Group is also exposed to earnings volatility on floating rate instruments. The financial instruments that expose the Group to interest rate and foreign currency risk are limited to listed shares, and cash and cash equivalents. The Group has no significant exposure to interest rate risk and foreign currency risk, attributable to floating interest rate financial liabilities and small exposure in foreign currency financial instruments respectively.

ii. Other price risk

Other price risk relates to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk) of securities held. Such risk is managed through diversification of investments across industries and geographic locations. The Group’s investments are held in the following sectors at the end of the reporting period: Group

31.3.2016 31.3.2015 S$ S$

Available‐for‐sale financial assets – non‐current IT software and services 13,699,381 ‐ Automotive ‐ 66,300 Conglomerate ‐ 82,620 Entertainment ‐ 130,781 Food and beverage ‐ 28,350 Food producer ‐ 81,500 Healthcare ‐ 41,748 Property ‐ 110,408 REIT ‐ 228,615 Real estate development 13,879 43,879

13,713,260 814,201

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25. Financial risk management objectives and policies (continued) Market risk (continued) ii. Other price risk (continued)

Group

31.3.2016 31.3.2015 S$ S$

Held‐for‐trading financial assets – current Travel, tourism and hospitality 6,797,143 ‐ Consumer discretionary 4,313,644 ‐ Technology 1,358,621 ‐ Industrials 5,885,162 ‐ Automotive 481,714 ‐ Media and communications 719,481 ‐ Conglomerate ‐ 2,384,645 Entertainment ‐ 1,363,225 Financial service ‐ 2,492,926 Food and beverage ‐ 497,475 Food producer ‐ 1,857,324 Healthcare ‐ 415,230 Property ‐ 1,506,924 REIT ‐ 1,573,558

19,555,765 12,091,307

ensitivity analysis The following table illustrates sensitivities to the Group’s exposures to changes in interest rates, foreign currency rates and equity prices. The table indicates the impact on how profit and equity values reported at the end of the reporting period would have been affected by changes in the relevant risk variable that management considers to be reasonably possible.

These sensitivities also assume that the movement in a particular variable is independent of other variables.

Profit Equity

31.3.2016 31.3.2015 31.3.2016 31.3.2015 S$ S$ S$ S$

Period ended 31 March +/‐5% in forex rates +/‐977,789 +/‐286,506 +/‐1,662,758 +/‐296,691 +/‐10% in listed investments +/‐1,955,577 +/‐1,286,163 +/‐3,325,515 +/‐1,363,195

Liquidity risk

Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting financial obligations due to shortage of funds. The Group’s and the Company’s exposure to liquidity risk is minimum due to net current asset of S$35,107,487 as at 31 March 2016 (2015: S$32,497,631).

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25. Financial risk management objectives and policies (continued) Liquidity risk (continued) Analysis of financial instruments by remaining contractual maturities The table below summarises the maturity profile of the Group’s and the Company’s financial assets and liabilities at the end of the reporting period based on contractual undiscounted repayment obligations. 31.3.2016 31.3.2015 One year or

less One to five

years Total One year or

less One to five

years Total

Group S$ S$ S$ S$ S$ S$ inancial assets Investment securities 19,555,765 13,713,260 33,269,025 12,091,307 814,201 12,905,508 Trade and other receivables

3,149,319

‐

3,149,319

2,030,660

‐

2,030,660

Cash and cash equivalents

18,737,470

‐

18,737,470

21,656,807

‐

21,656,807

Total undiscounted financial assets

41,442,554

13,713,260

55,155,814

35,778,774

814,201

36,592,975

inancial liabilities Trade and other payables

1,820,858

‐

1,820,858

954,017

‐

954,017

Hire purchase 64,346 85,555 149,901 25,047 43,507 68,554 Total undiscounted financial liabilities

1,885,204

85,555

1,970,759

979,064

43,507

1,022,571

Total net undiscounted financial assets/ (liabilities)

39,557,350

13,627,705

53,185,055

34,799,710

770,694

35,570,404 31.3.2016 31.3.2015 One year or

less One to five

years Total One year or

less One to five

years Total

Company S$ S$ S$ S$ S$ S$ inancial assets Investment securities 1,349,171 ‐ 1,349,171 ‐ ‐ ‐ Trade and other receivables

23,553,051

‐

23,553,051

24,632,403

‐

24,632,403

Cash and cash equivalents

4,574,641

‐

4,574,641

5,278,839

‐

5,278,839

Total undiscounted financial assets

29,476,863

‐

29,476,863

29,911,242

‐

29,911,242

inancial liabilities Trade and other payables

163,213

‐

163,213

30,841

‐

30,841

Total undiscounted financial liabilities

163,213

‐

163,213

30,841

‐

30,841

Total net undiscounted financial assets/ (liabilities)

29,313,650

‐

29,313,650

29,880,401

‐

29,880,401

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26. Capital management

Management controls the capital of the Group in order to maintain a good debt to equity ratio, provide the shareholders with adequate returns and to ensure that the Group can fund its operations and continue as a going concern. The Group’s debt and capital includes ordinary share capital and financial liabilities, supported by financial assets. There are no externally imposed capital requirements. Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of debt levels, distributions to shareholders and share issues.

27. Segment information

For management purposes, the Group is organised into business units based on their products and services, and has four reportable segments as follows: I. The investment segment is involved in investments in listed securities.

II. The private equity segment (previously known as corporate segment) is involved in Group‐level corporate

services, treasury functions and private investment in companies with IPO potential. III. The education and event segment is involved in financial education, training seminar and event organisation

business. IV. The property segment is in the business of constructing, developing and leasing out of residential and

commercial properties. This reportable segment has been formed by aggregating the property construction/development operating segment and the investment properties operating segment, which are regarded by management to exhibit similar economic characteristics.

Except as indicated above, no operating segments have been aggregated to form the above reportable operating segments. Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss which in certain respects, as explained in the table below, is measured differently from operating profit or loss in the consolidated financial statements. Group income taxes are managed on a group basis and are not allocated to operating segments. Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties. F

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27. Segment information (continued)

Investment

Private equity

Education and event

Property

Adjustments and eliminations

Note

Per consolidate financial statements

31.3.2016 S$

17.5.2014 to

31.3.2015 S$

31.3.2016 S$

17.5.2014 to

31.3.2015 S$

31.3.2016 S$

17.5.2014 to

31.3.2015 S$

31.3.2016 S$

17.5.2014 to

31.3.2015 S$

31.3.2016 S$

17.5.2014 to

31.3.2015 S$

31.3.2016 S$

17.5.2014 to

31.3.2015 S$

Revenue External customers* (825,479) 1,436,814 11,116,689 3,876,976 11,048,280 5,285,329 886,605 70,200 ‐ ‐ 22,226,095 10,669,319 Inter‐segment 1,000,000 920,687 1,150,000 3,780,000 ‐ ‐ 358,419 298,682 (2,508,419) (4,999,369) A ‐ ‐ Total revenue 174,521 2,357,501 12,266,689 7,656,976 11,048,280 5,285,329 1,245,024 368,882 (2,508,419) (4,999,369) 22,226,095 10,669,319 Results: Gain on re‐measurement of investment

‐

‐

9,156,519

‐

‐

‐

‐

‐

‐

‐

9,156,519

‐

Interest income 27,574 4,567 595,339 469,534 6,238 ‐ 872,644 ‐ (315,741) (465,919) 1,186,054 8,182 Depreciation 23,301 13,700 ‐ ‐ 145,262 52,696 51,185 35,919 ‐ ‐ 219,748 102,315 Share of results of associates

‐

‐

(17,479)

‐

138,468

‐

(597,235)

‐

‐

‐

(476,246)

‐

Segment profit/(loss) (1,330,100) 1,218,660 17,250,319 3,586,331 3,220,521 921,605 1,277,103 9,344 (154,590) (7,168) B 20,263,253 5,728,772 31.3.2016

S$ 31.3.2015

S$ 31.3.2016

S$ 31.3.2015

S$ 31.3.2016

S$ 31.3.2015

S$ 31.3.2016

S$ 31.3.2015

S$ 31.3.2016

S$ 31.3.2015

S$ 31.3.2016

S$ 31.3.2015

S$ Assets: Investment in associates ‐ ‐ 521 959,696 ‐ ‐ 1,884,630 ‐ ‐ ‐ 1,885,151 959,696 Additions / (deduction) to non‐current assets

(606,030)

895,707

13,416,599

1,824,573

537,221

148,297

2,072,930

269,415

‐

‐

C

15,420,720

3,137,992

Segment assets 22,542,605 22,075,127 22,978,425 10,755,751 9,925,511 5,997,938 3,789,159 499,764 1,885,151 959,696 D 61,120,851 40,288,276 Liabilities Segment liabilities 264,113 93,263 293,145 42,440 4,883,604 2,793,959 550,434 9,321 1,469,043 839,184 E 7,460,339 3,778,167

* evenue from investment segment mostly pertained to fair value gain/ loss and dividend income from investment in e uity security.

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Notes Nature of adjustments are eliminations to arrive at amounts reported in the consolidated financial statements. A Inter‐segment revenues are eliminated on consolidation. B The following item is deducted from segment profit to arrive at “profit before tax” presented in the

consolidated income statement: 31.3.2016 31.3.2015 S$ S$

Finance costs (154,590) (7,168) C Additions to non‐current assets consist of additions to plant and equipment, investment properties,

intangible assets and investment securities. D The following item is added segment assets to arrive at total assets reported in the consolidated

statement of financial position: 31.3.2016 31.3.2015 S$ S$

Investment in associate 1,885,151 959,696 E The following items are added to segment liabilities to arrive at total liabilities reported in the

consolidated statement of financial position: 31.3.2016 31.3.2015 S$ S$

Deferred tax liabilities 11,344 41,331 Income tax payable 1,457,699 797,853

1,469,043 839,184 Geographical information Revenue and non‐current assets information based on the geographical location of customers and assets respectively are as follows:

Revenue Non‐current assets

31.3.2016

17.5.2014 (date of

incorporation) to 31.3.2015 31.3.2016 31.3.2015

S$ S$ S$ S$ Singapore 20,002,160 10,669,319 17,067,310 4,097,688 Australia 1,228,043 ‐ 2,118,530 ‐ Malaysia 945,940 ‐ 331,795 ‐ People’s Republic of China and others 49,952 ‐ 773 ‐ 22,226,095 10,669,319 19,518,408 4,097,688

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Non‐current assets information presented above consist of plant and equipment, investment properties, intangible assets, investment in associates and investment securities as presented in the consolidated statement of financial position. The Group does not have any major customer as its revenue are derived from individual retail customers.

28. Dividends Group and Company 31.3.2016 31.3.2015 S$ S$ Declared and paid during the financial year: ividends on ordinary shares

‐ Final exempt (one‐tier) dividend for 2016: 1.00 (SGD cents) (2015: Nil) 3,571,442 ‐ ‐ Interim exempt (one‐tier) dividend for 2016: 0.50 (SGD cents) (2015: Nil) 1,785,721 ‐ 5,357,163 ‐ Proposed but not recognised as a liability as at 31 March: ividends on ordinary shares subject to shareholders approval at the A

‐ Final exempt (one‐tier) dividend for 2016: 0.50 (SGD cents) (2015: 1.00 (SGD cent)) per share

1,784,471

3,571,442

29. Events occurring after the reporting period

On 6 May 2016, the Company’s wholly owned subsidiary, 8IH Global Ltd (“8IHG”), entered into a subscription and shareholders’ agreement with CT Hardware Sdn Bhd (“CTH”) whereas 8IHG will subscribe 499,900 new ordinary shares of CTH, constituting 49.99% of the enlarged share capital, for Malaysian Ringgit (“RM”) 3,800,000. CTH is a Malaysian based, bricks‐and‐mortar business engaged in the trading and retail sale of power tools, equipment and machinery since 1977, with a revenue in excess of RM17,500,000 and a profit before tax in excess of RM800,000 for financial year 2015. CTH is the official dealer for Bosch and carries international brands including Grundfus, Skil, Pferd, Toptul, Stanley, Tsurumi, Fasco, Stihl, Robin and Ingersoll‐rand. The fresh capital will be used as working capital to set up distribution centre for an improved storage system to house an increased product range, as well as an Enterprise Resource Planning (ERP) system integrated with its e‐commerce business to smoothen the flow of stock distribution. The completion of the transaction is subject to conditions precedent set out in the subscription and shareholders’ agreement. On 11 May 2016, the Company entered into a share swap agreement to acquire 51% equity interest in Financial Joy Institute Pte Ltd (“FJI”) in consideration of issuance and allotment of ordinary shares in the Company amounted to weighted average market price of S$2,040,000 of the Company’s securities trading on the Australian Securities Exchange market, calculated over the last 5 trading days prior to the completion of the share swap agreement (“Consideration Shares”). The Consideration Shares will be subject to voluntary escrow of 24 months. FJI provides financial and investment education through its main brand, Value Investing College, conducted in Singapore, Malaysia, Taiwan, Thailand, Myanmar, India and Vietnam, with expansion plans to South Africa, Australia, Philippines, Dubai, Japan and China. The completion of the transaction is subject to satisfactory due diligence by the Company. F

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30. Comparative figures

The audited comparative figures presented in the financial statements are not entirely comparable as they cover a period from 17 May 2014 (date of incorporation) to 31 March 2015.

31. Authorisation of financial statements for issue

The financial statements for the year ended 31 March 2016 were authorised for issue in accordance with a resolution of the board of directors on 16 May 2016.

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8I HOLDINGS LIMITED RESULTS - ASX · private equity, as well as a financial education and training...

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